Ingram Micro Catches A Goldman Sachs Upgrade (IM, TECD)

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By Douglas A. McIntyre Published
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Ingram Micro Inc. (NYSE: IM) is seeing a valuation upgrade from Goldman Sachs this morning.  It is being added to the Americas Buy List (after a neutral) after recent weakness is showing an opportunity to build positions at what it is referring to as "trough valuation levels."

Goldman Sachs also noted that it expects fundamental strength across all geographies here to drive strong revenue and earnings growth in the December quarter and in 2008.  The research notes that Ingram Micro is down some 16% since early November on no real fundamental news, leaving the distributor at 9-times the Goldman Sachs calendar EPS target of $1.97.

Goldman Sachs sees this stock at $24 over the next 12 months.  This closed at $17.80 Wednesday and the 52-week trading range is $17.67 to $22.50.

We perused through First Call data and it appears that Wall Street analysts have a consensus target closer to $25 and a 2008 EPS target of $1.96, so this upgrade isn’t calling for anything that would be outlandish for a crowd of analysts.  Wall Street uses Tech Data (NASDAQ:TECD) as the comparison stock here and the valuations at Tech Data are much higher, although we would caution that there are more overlaps in more areas of the companies than a head to head comparison.

Jon C. Ogg
January 3, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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